Ikea plans next investment round for India to continue expansion

Home and lifestyle brand Ikea is planning its next round of investment in its India operations to continue to fuel expansion in the country by opening new stores and reaching more customer demographics. 

“This first investment that we committed is booked with the projects in NCR,” Ikea’s India CEO Susanne Pulverer told the Press Trust of India. “So with that, we have exhausted the Rs 10,500 crore and we are looking at the next level of investment to further build Ikea presence in India, to expand volumes and increase sourcing. So that is in the plan making and we will announce more when we are ready. The plans are being formulated, and we will make announcements when ready.”

Ikea currently runs brick-and-mortar stores in Mumbai, Bengaluru, and Hyderabad and is currently preparing to open stores in Noida and Gurugram with an investment of around Rs 7,000 crore. The stores are expected to become operational from 2025, India Retailing reported. The business is also deepening its links with Indian industry to up its sourcing in the country. 

“As a market, it is very dynamic,” said Pulverer about the Indian market. “Many young people are upgrading their lives and investing in their homes. So it is a huge opportunity market for Ikea… Beyond the NCR [National Capital Region], Pune and Chennai are of interest. Kolkata is also on our radar, but it will be a stepwise approach.”